CNH Industrial (CNH) Q1 2025 earnings summary

Executive summary

• Q1 2025 consolidated revenues were $3.83 billion, down 21% year-over-year, with net income of $132 million, reflecting lower industry demand, dealer destocking, and higher tax rates.

• Adjusted EBIT for Industrial Activities was $101 million, down 73% year-over-year, with a margin of 3.2%.

• Production hours dropped 26% year-over-year, and cost-saving initiatives partially offset market headwinds.

• Leadership transition announced, with new CFO and other executive appointments.

• New product launches in precision ag technology and automation highlighted.

Financial highlights

• Net sales of Industrial Activities fell 23% year-over-year to $3.17 billion.

• Adjusted net income was $132 million, down 66% year-over-year; adjusted diluted EPS was $0.10, down from $0.30.

• Free cash flow for Industrial Activities was a $567 million outflow, improved from Q1 2024.

• Gross profit margin of Industrial Activities declined to 19.0% from 22.7% year-over-year.

• Operating cash flow was $162 million, a significant improvement from $(894) million in Q1 2024.

Outlook and guidance

• 2025 net sales for Industrial Activities expected to decline 11%–19% year-over-year, with adjusted EBIT margin guidance of 4.5%–6.5%.

• Adjusted diluted EPS guidance revised to $0.50–$0.70 for 2025, reflecting global trade uncertainties.

• Free cash flow of Industrial Activities expected between $100 million and $500 million.

• Agriculture segment net sales forecasted down 12%–20% year-over-year; adjusted EBIT margin 7%–9%.

• Construction segment net sales expected down 4%–15% year-over-year; adjusted EBIT margin 2%–4%.